1. Corporate Financial Services - Leveraging our leadership position for specialisation and growth Roger Davis Head of Corporate Financial Services 18 July 2000

2. ANZ Corporate: leveraging our leadership position Portfolio of Specialist Product and Customer Businesses with strong to dominant market positions – Strong performance – Customer centricity – Product excellence Significant Growth Opportunities: – Capital markets – Business eCommerce – Leveraging the middle-market franchise

3. CFS: a major contributor to the bank’s earnings Corporate Financial Markets Asset Finance Capital Markets Institutional Structured Finance Transaction Services % $738m $311m Customer Businesses

4. CFS: financial performance Profit Costs Income % Net Interest Margin (LHS) Non Interest Income (RHS) % Cost to Income (LHS) Cost to Assets (RHS) $m Provisioning $m Actual Credit Costs Economic Credit Costs

5. Share of Primary Relationships with Middle-Market Companies 0% 10% 20% 30% ANZNABWBCCBA Source: 1999 Roberts Research 0 10 20 30 40 50 CFS: a leader in Corporate Banking Share of Significant Relationships with Large Corporates ANZWBCNABCBA #1 Best Bank in Australia US Global Finance Magazine 1999 #1 Domestic Commercial Paper Asia Money 1999 #1 Arranger/Co-Arranger - Greater Asia Capital Data Loan 1999 #1 Arranger - Asia Pacific Project Finance International 1999 #1 Interest Risk Management BRW/KPMG Poll 1998 #1 FX House All Round Excellence Asia Money 1999 #1 AUD/USD Currency Options Bank Risk Magazine 1999 Source: 1999 Greenwich Associates %

6. Asset Finance GSF RAROC Economic Capital Global FX Global Trans GCM Lower Higher Institutional Corporate Fin. Products CFS: a balanced portfolio of service and asset businesses

7. A customer focus and product centric business InstitutionalCorporate 6 Product Businesses3 Customer Segments Source: Corporate Banking Roberts Research Group Overall Satisfaction with Bank Esanda* ANZ NAB CBA WBC Financial Markets Capital Markets Structured Finance Global Transaction Services Business eCommerce Asset Finance

8. Market Penetration - Large Corporates Source: Greenwich Associates Customer centricity: Institutional Banking 21% Share of Corporate Profit 0 10 20 30 40 50 ANZNABCBAWBC Strategies Leverage industry specialisation Leverage strong market position to become an adviser Maintain focus on customer profitability and effective use of balance sheet Build e-Commerce capability Customer EVA Deciles Mar-00 %

9. Customer centricity: Corporate Banking Deepen share of wallet Build broader fee-based business - ie “Wall Street to Main Street” selling Build e-Commerce solutions Cross sell retail products 18% Strategies Market Penetration - Middle Market Share of Corporate Profit Customer EVA Deciles*

10. Motor Cars Comm Vehicles Total Motor Vehicles OtherTotal Market % share (est.) New Business Writings market share writings Strategy Improve sustainability of core franchise Radically transform the business Accelerate growth program Source: KPMG, Financial Reports, Roy Morgan, Esanda Customer centricity: Asset Finance 14% Share of Corporate Profit Motor Vehicle Deal Volumes Australia Source: ABS, AFJ, Esanda $b (est.)

11. CFS: market leader in customer satisfaction 66.577.588.5 WBC NAB CBA ANZ Tailoring solutions to our clients' business needs 66.577.588.5 WBC NAB CBA ANZ Coordinating specialist resources to service our clients’ business 66.577.588.5 WBC NAB CBA ANZ Satisfying our international trade specialist clients Source: Roberts Research Group - 1999 Customer Satisfaction Research Satisfaction with Relationship Manager ANZ NAB CBA WBC

12. A focused customer and product centric business InstitutionalCorporate 6 Product Businesses3 Customer Segments Source: Corporate Banking Roberts Research Group Overall Satisfaction with Bank Esanda* ANZ NAB CBA WBC Financial Markets Capital Markets Structured Finance Global Transaction Services Business eCommerce Asset Finance

13. Product centricity: Global Transaction Services Customer Perception - Global Trade Services Australasia Region, January 2000 0 10 20 30 40 50 60 70 Source : Brendan Wood International ANZ NAB WBC CBA Citibank HSBC Share of Corporate Profit No. 1 Trade Services provider in Australasia 2000 (BWI) No. 1 in sub-Custody in Australasia 2000 (GI) Leader in major transaction banking services Leader in AUD/NZD Correspondent Banking League Tables Continue to re-engineer the cost base Increase % of STP Replace inefficient processing systems Insource where we have scale and sustainable competitive advantages Build value added solutions & products Embrace e-Commerce in payments Strategy %

14. Motor Cars Comm Vehicles Total Motor Vehicles OtherTotal Market % share (est.) New Business Writings market share writings Strategy Improve sustainability of core franchise Radically transform the business Accelerate growth program Source: KPMG, Financial Reports, Roy Morgan, Esanda Product centricity: Asset Finance 14% Share of Corporate Profit Motor Vehicle Deal Volumes Australia Source: ABS, AFJ, Esanda $b (est.)

15. Initiatives Further strengthen client relationships Continue to maintain a diversified portfolio across sectors and geography with strong ECA support Increase focus on structured, high margin solutions Expand corporate finance and ECA activity in Asia Exploit the cooperative agreement with SCB in MESA Product centricity: Global Structured Finance League Tables No 1 Arranger 1999, Asia Pacific No 1 Arranger 1999, Asia and Australia No 1 Arranger, South Asia 1997 to Date Indian Loan House of the year, 1999 No 1 Arranger, Export Credit Business, Australia, 1999 (EFIC) No 1 Advisor Petrochemicals (PFBL 1999) No 1 Advisor Leisure (PFBL 1999) 16% Share of Corporate Profit Source: Project Finance Intl, Global Finance, Capital Data Loanware, IFR Asia, EFIC Key Activities Industrial Transportation Project Finance Corporate Finance Export Credit Leasing and Tax

16. Initiatives Continue to focus on sales Continued expansion of product range Continue to develop Global capability Centralisation of global infrastructure Increased penetration of FX Online in Australia and overseas Product centricity: Financial Markets League Tables Best FX Bank, Australia 1999 Top 10 World FX Bank 1999 Best FX Bank of the Year World No 1 FX Options AUD, 1999 Best of Breed Treasury Banker Swaps and Options (Asiamoney 2000) 14% Share of Corporate ProfitFX Cumulative Trading Revenues $m

17. Initiatives Credit Derivatives and Equity Derivatives Securitisation Development of new channels into Middle Market and Retail Secondary market offshore Partnership with Lehman Brothers ANZ bonds issue web site Product centricity: Capital Markets League Tables No 1 Domestic Commercial Paper Derivatives/Risk Management House of the Year No 2 Lead Manager, Corporate Bonds No 3 Best Lead Manager, Securitisation, No 3 Australia/New Zealand MTNS 5% IR Derivative Cumulative Trading RevenuesShare of Corporate Profit Cumulative Daily Revenue $m

18. ANZ Corporate: leveraging our leadership position Portfolio of strong Product and Customer Businesses with strong to dominant market positions – Strong performance – Customer centricity – Product excellence Growth Opportunities: – Capital markets – Business e-Commerce – Leveraging the middle-market franchise

19. Growth initiatives Goal: to double profit from 1999 to 2004 On track after 12 months No silver bullets but rather a continued reliance on consistent double- digit growth initiatives across CFS Three key areas of activity are worth highlighting: – Capital markets – B2B – Middle market:

20. Growth: credit derivatives Key Points The Securities Trading Business will use credit derivatives to achieve the following CFS objectives: – to enhance diversification of credit portfolios – to trade forward expectations or inconsistencies of credit-risk pricing, and – to allow new sources of investment capital to be committed to credit risk Australian Credit Derivatives Market

21. Growth: equity derivatives Key Points Increasing penetration Growth is expected in innovative equity product ANZ Capital Markets has a strong and highly profitable track record ANZ captured 6% market share with its first series of issues Australian Exchange Traded Options Market $b Australian Warrant Market $b

22. Growth: private equity funding Key points Equity investment capability of A$75m. Strict investment criteria Not well serviced by existing players Leverage ANZ market position Potential revenue of around $25-30m over 3 years Australian Private Equity Funds Under Management $m

23. Growth: increase product penetration in middle-market Estimated $80+ million revenue target over three years Source: FPRG, CPA, Roberts Research

24. Capital Markets deals for the middle- market

25. Middle market product penetration Status Steady increase in revenues from selling FX products and Capital Markets products to middle-market customers: – Revenue from Capital Markets products in 1H00 grew 14.5% versus 1H99 – Revenue from FX products in 1H00 grew 28.6% versus 1H99 $m Product Penetration in Middle Market FX ProductsCap Mkts Products

26. e-Commerce momentum B2B

27. Corporate Banking Portal (FXOnline) eProducts (eGate, Identrus) B2B Portal (eProcurement) Growth: business e-Commerce Australian Online Total Revenue Estimates (A$b) Total Online Revenues (A$b) Business-to- business (B2B) Business-to- consumer (B2C)

28. Growth: FX online Registered Users Transaction Volume Automated real time dealing JV with Reuters Leverage ANZ dominant FX position First mover advantage 35% share of the FX online market Key Points

29. Growth: eGate Key Points ANZ eGate is a secure internet payment gateway $500m market opportunity. Operational March 2000 eGate Version 2 soft release September 2000 (multi currency) Future versions will include escrow and eCheques Major customers wins eGate Customers ActualTarget

30. Growth: eProcurement Internet marketplace Added value through integration of financial services Leveraging corProcure initiative Currently in beta test with 10-20 clients JV with MR & O Leverage customer base Collaborative approach Browse Suppliers’ catalogues and perform transactions in real time Workflow Approval Routing Desktop Requisition Maintenance, Repair, and Operating Supplies and Services Distributed Buyers Supplier Marketplace Business System Integration Inventory Purchasing Accounting Human Resources Key Points

31. Growth: eauto.com.au

32. Summary: leveraging our corporate leadership position Goal: To double Corporate Financial Services’ profit by 2004 Our growth plans will be predicated on a range of key initiatives from across the business Crucial to these efforts will be our success in – building share in the Middle Market – expanding our Capital Markets initiatives – building a B2B platform These initiatives are expected to generate $300m in revenue over the next 3 years CFS - A Growth Business We have strong to leadership positions in: – Middle-market – Large corporates – Financial markets – Capital markets – Structured finance – Trade banking – Asset financing Leverage our strong market position Fully exploit: – Powerful ANZ brand integrity – Large and attractive customer base Transition e-commerce initiatives into vibrant and viable businesses: – ANZ eGate – ANZ eProcurement (eg MRO.com, corProcure) – ANZ B2B Portal Nurture e-commerce franchise